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Dec 31, 2021
Nexstar Q4 2021 Earnings Report
Reported a decrease in net revenue but an increase in core television advertising and digital revenue for the fourth quarter of 2021.
Key Takeaways
Nexstar Media Group reported Q4 2021 financial results, with net revenue of $1.25 billion, a 9.5% decrease compared to the prior year quarter. However, core television advertising revenue increased by 4.3%, and digital revenue saw a significant increase of 56.3%. Adjusted EBITDA was $496 million, representing a 39.8% margin, and free cash flow was $327 million.
Net revenue declined by 9.5% year-over-year to $1.25 billion, but excluding political advertising revenue, it increased by 13.8%.
Core television advertising revenue increased by 4.3% year-over-year to $494 million.
Distribution revenue rose by 16.6% year-over-year to approximately $616 million.
Digital revenue increased by 56.3% year-over-year to approximately $102 million.
Revenue by Segment
Forward Guidance
Nexstar expects 2022 operating results will benefit from strong mid-term election year political advertising. Looking ahead, 2023 will benefit from the renegotiation of our distribution contracts representing more than half of our subscribers during 2022, and 2024 will benefit from presidential election year political advertising and additional distribution contract renewals. For the 2022/2023 cycle, we expect to generate pro forma average annual free cash flow of approximately $1.40 billion.
Positive Outlook
- Strong mid-term election year political advertising will benefit 2022 operating results.
- Renegotiation of distribution contracts representing more than half of subscribers during 2022 will benefit 2023.
- Presidential election year political advertising and additional distribution contract renewals will benefit 2024.
- Expect to generate pro forma average annual free cash flow of approximately $1.40 billion for the 2022/2023 cycle.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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